A Nova Scotia woman and her nephew have reached an agreement on how they will share a disputed $1.2 million Chase the Ace jackpot. The nephew will end up with $350,000.

Barb Reddick, 57, and her nephew Tyrone MacInnis, 19, each received cheques for $611,319.50 in July, after a $1,222,639 ticket was drawn with both their names on it in Margaree, N.S.

Reddick said shortly after the cheques were presented that she was “taking (MacInnis) to court” because the ticket belonged to her and she had only asked her nephew to put his name on it for “good luck.”

She later told CTV News Channel that she had planned to give her nephew $150,000 if she won the draw, and that she believed MacInnis would have given her nothing had his ticket been drawn.

After five hours of mediation on Monday, MacInnis and Reddick agreed to share the money. Reddick’s lawyer Adam Rodgers said she will receive $261,319 from MacInnis, leaving him with $350,000 and Reddick with $872,639.

Rodgers says that both parties are satisfied with the settlement and “looking forward to putting this matter behind them.”

He added that the agreement was reached “in order to avoid further court proceedings and to bring this matter to a final conclusion.”

Rodgers had argued in court that the tickets were purchased with Reddick’s money and that there was no contract or agreement of any kind to share the proceeds.

“She agreed to have his name on the ticket for good luck," Rodgers said. "That's obviously been a point of contention for some people but that in itself doesn't create a contract."

Rodgers said at the time that Reddick, who worked for the Royal Canadian Navy for 23 years, did not have children of her own and hoped to reconcile her relationship with MacInnis.

Lawyer David Hutt, who was not involved in the case, previously told CTV News Channel that the dispute is a reminder for those who participate in lotteries together to write down how they plan to share money should their ticket win.

Chase the Ace is a type of lottery similar to a 50-50 draw, but instead of half the ticket sales going to the winner, he or she gets 20 per cent plus a chance to pull an ace of spades from a deck of cards. If he or she pulls the ace, they also win a jackpot made up of the remaining 30 per cent of ticket sales from all previous winners.

With a report from CTV Atlantic’s Kyle Moore